As an update to our August 20th blog post, the Bankruptcy Threshold Adjustment Act was passed by the House of Representatives on September 16, 2026 with minimal amendments, then again passed the Senate via Unanimous Consent on September 28, 2026. The bill heading to the White House for signature will permanently increase the debt limit for debtors under Subchapter V of Chapter 11 to $7.5 million. It will also change how debt limits are calculated in Chapter 13 bankruptcies. Instead of differentiating between secured debt limits and unsecured debt limits, the bill will simplify the Chapter 13 debt limitations by imposing a total $2.75 threshold on debt for individuals seeking Chapter 13 protection.
UPDATE: Both Houses of Congress Pass H.R. 7730 – Bankruptcy Threshold Adjustment Act
